Mobeus Income & Growth 4 Results

[onslow]

Whopping interim dividend announced of 13p per share

NAV up 8.5% for the first 6 months of 2019

They realised investments totaling £6.82 million, however only made £1.79m worth of new investments. Large cash pile, yet looking to raise additional funds even though they state this:

"It is worth noting that the amount of capital available for investment in this sector is substantial. This is causing increased competition and higher entry valuations for the most attractive investment opportunities."

https://www.londonstockexchange.com/exc ... 81821.html

[naflod]

The thing that jumped out at me was the continued suspension of the DIS whilst announcing the intention to fund raise.

The 13p/share dividend arises because they are awash with cash, yet there will be a fundraising!

Is this another case of directors going native?

Surely, reintroducing the DIS and reducing the intended amount of the fundraising by the amount reinvested would be in the best interests of the exisating shareholders. Paying out in cash and having a larger raise will give the manager a greater fee.

naflod

PS Mobeus 2 issued an IMS with a special dividend of 15p. To be fair to MIG, they have never had a DIS

https://www.londonstockexchange.com/exc ... 81832.html

[james188]

I was also sorry to see that Mobeus 4 has deferred reinstating the DRIS. I wonder if Income & Growth will do likewise. Probably, but I hope not. However, I do approve of cleaning out cash from realisations for the benefit of current shareholders, rather than offering this to new shareholders as an extra incentive to its top-up offer, as a certain well known VCT did at the start of the year.

[Karellan]

I am never quite sure how to think about firms like this. The Mobeus returns are good but my holdings are worth less than I paid for them even after tax relief. I know that I will have to sell them eventually and I suppose its nice having them do that for me. The return of capital ups my overall return for the exposure as I see it. All of the Mobeus funds seem to have done the same for me.

Fund raising - I guess that they make a bit on the initial commission which is good for shareholders.

[scotia]

I was also sorry to see that Mobeus 4 has deferred reinstating the DRIS.

In the email from Mobeus 4 today:-
As stated in my Chairman’s Statement within the Half-Year Report, the Board has the operation of the Dividend Investment Scheme (“the Scheme”), which is presently suspended, under review. It expects to conclude this review and announce a decision in respect of the Scheme before the next Annual General Meeting in May 2020.
Its now August 2019 - they will let us know before May 2020.